Two weeks after reports that water meter manufacturer Arad Ltd. (TASE:ARD) was involved in a cartel in the water meters sector, the company yesterday announced some good news in its current business. Arad, controlled by Kibbutz Dalia and Ramot Menashe, has signed an memorandum of understanding (MOU) to acquire 51% of Spain's Contadores de Aqua de Zaragoza SA (the Water Meter Company of Zaragoza), also known as Contazara, for €8.1 million.
Arad also received a call option to acquire the remaining 49% of Contazara, exercisable in either May 2013 or May 2014, at a company value to be determined on the basis of the company's financial results in the preceding two years.
According to Arad, Contazara has been in business for 25 years and its customers include Spain's largest water utilities, including the utilities of Barcelona, Seville, Valencia, and Malaga.
Arad's share rose 0.3% in morning trading today to NIS 13.50, giving a market cap of NIS 325 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 9, 2009
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